Bill, since the beginning of the month, I have suggested that the worse part of the scenario will not start until the middle of the month (yesterday's call for the scenario resumption in full force, and run for the hills, was actually the trigger of the more difficult part), and yes, these bearish feeling and despondency are going to cause a climactic end and reversal, that is why I have suggested that we may get few consecutive days of tic in the -1000 or more. Note however, that we are far from that point of throwing the towel in, their is a paucity of new lows (only 67 on the Naz today), and my explanation is quite simple, many of the smaller stocks that were target for the December tax selling season are still basking (partially) in the post tax selling relief rally, and when these will start and lose their support (like my buying CCRD today in support of one of those <g>), then we might get over the decline. It is quite possible, however, that this sector will not cave in, and that would be a pretty good sign (retesting the lows with consecutively stronger internals). Thus, yes, the bearishness in some of the leading stocks is indeed a sign that a bottom is approaching, and was factored in the "scenario".
Zeev |
